How to Stop the Foreclosure Eviction Process

What is Foreclosure Eviction? What is the process of Foreclosure Eviction? Have you ever gone through an eviction due to your foreclosure or your landlord's foreclosure? Well, you have rights when it comes to evictions because of foreclosures.

What is an Eviction?

Eviction is the final step after the foreclosure process is complete, or after a foreclosure sale. Foreclosure is a procedure supervised by the court in order to remove those currently in possession of the property. Eviction of the previous homeowner is one thing. But, the eviction of tenants renting a property that's gone through foreclosure is a tricky process. That's because it affects those of lower stature that are struggling to find the most appropriate housing. 

All tenants have rights. There are local and federal laws that have been put in place to protect tenants. For example, in San Francisco, CA there is a “just cause” which states that if the landlord of the property is covered by the city’s rent ordinance, they have a greater motive for pursuing an eviction. A property that changes hands because of foreclosure is not a valid reason for “just cause.”

Foreclosure vs. Eviction

Evictions and foreclosures are two separate procedures. A foreclosure is the act of repossession because of an unpaid mortgage or property taxes. An eviction is the removal of a tenant from land or property through a legal process for nonpayment of rent. Many foreclosure tenants have been confused by the “Note of Default” or “Note of Sale” of a foreclosure as an eviction notice.

Foreclosure Eviction Timeline

The new owner of a foreclosed property has the right to take possession of the property. However, there are specific laws that regulate the timeline of a foreclosure eviction. This may vary from state to state, depending on whether or not the home is occupied by the previous owner or a tenant. In the state of Washington, for example, the previous homeowner or current tenant has 20 days to vacate the property after a foreclosure. The purchaser will have the right to file action for eviction or Unlawful Detainer if the previous owner or tenant does not vacate the property within this time. 

In accordance to California’s Department of Real Estate’s Homeowner’s Guide to Foreclosure in California, a homeowner should not make plans to move out of their home until after the foreclosure sale and eviction process is concluded. In the case of tenants, the eviction process can be prolonged because the foreclosure is not the fault of the tenant.

Eviction Process

Each state has its own procedures for foreclosure evictions, which depends on whether the foreclosure takes the path of the judicial or non-judicial process. A judicial foreclosure is when the eviction is within in the same lawsuit, even though the previous owner has the right to stay until the redemption period ends, which can be up to one year. A non-judicial foreclosure requires action of its own in order to evict the previous owner. 

 

Once the 3-day notice expires and the occupant does not leave, an Unlawful Detainer must be filed by owner. This is the same action used to evict tenants. After an Unlawful Detainer is filed, the occupant will have five days to respond to it. If no response is made, the court can make a judgment for possession within 10 days. Then, the eviction paperwork is forwarded to the county sheriff for completion. If there's still no response from the occupant, a trial is set forth within 20 days. If the court rules in favor of eviction, the order is then passed and carried out by the sheriff.

Foreclosure Evictions and Tenants

When a foreclosure eviction is ruled by the court against the tenant, there is extra protection that the law provides. Foreclosure tenant evictions laws vary from state to state. In the state of California, for example, tenants in good standing with rental payments on a lease agreement can't be evicted until the rental lease expires. When a month-to-month rental agreement is used, the new owner has to give the tenant a minimum of 90 days before the eviction process is started. This is in accordance with the Protecting Tenants at Foreclosures Act of 2009.

Eviction and Rent Laws

In some states there are rent and eviction laws that provide additional protection to tenants being evicted due to foreclosures, depending on the area and property type. These laws reject the new owner from the abuse of using foreclosure as a way to evict the tenant and start fresh. For example, on the California Courts website, there is a database of rent-controlled properties that one can use as references to find out if a property is rent-controlled or not.

How to Stop Foreclosure Evictions

If you want to find out in more detail how you can stop a Foreclosure Eviction in the state of California, check out the ebook “How to Stop Foreclosure Evictions.” This will give you a first-hand look, based on personal experience, on the rights that you have to stop an eviction related to foreclosure.